Institutional investors’ confidence rose in October, according to a new State Street index.
“The October index shows investor confidence rose 1.7 points to 104.2 from a revised September level of 102.5,” says State Street.
It added that the increase continues the trend seen throughout much of 2003. Confidence was at 87.2 at the start of the year.
The State Street Investor Confidence Index was launched by a State Street subsidiary in September.
“Institutional investors continue to display a sense of optimism ahead of any changes in employment and spending,” says Harvard University professor Ken Froot who co-developed the index with State Street’s Paul O’Connell.
“Yields on bonds have risen, but not by enough to dissuade investors from buying additional risky assets.”
Consumer confidence, as measured by the University of Michigan’s mid-month index of consumer sentiment, rose to 89.4 in October.